Steven Gerrard fielded a youthful team, with the likes of Adam Lewis and Curtis Jones unavailable while Niall Brookwell suffered an injury during the warm-up.
Schoolboy Fidel O'Rourke came off the bench to net a consolation goal for the young Reds.
Reflecting on his side's overall performance, Gerrard told Liverpoolfc.com: "It was a tough morning for us and we were second best all over the pitch.
"There weren't really many positives to take from the game except for Fidel, who is still at school, coming off the bench to score his first goal at U18 level.
"It was a nice goal after a great assist from Jake Cain."
Liverpool U18s: Kelleher, Sharif, Savage, R Williams, Boyes (O'Rourke), Clayton, Camacho, Dixon-Bonner, McAuley, Bearne (Cain), Millar.
LFCTV GO: Watch highlights from the clash at Newcastle United